Strong Economy Continues as Dems Warn of Collapse
Labor force numbers hit record high, tariffs may rise, and the Fed drops interest rates.
The jobs numbers for July indicate that the country is continuing to enjoy a robust economy. The number of jobs added hit Wall Street’s expectation at 164,000. That’s not a massive number, though with the labor force hitting a record 163.4 million, many economists see it as an indicator of the economy nearing full employment. Another good indicator for the current healthy economy is wage growth, which has now risen 3.2% over last year. That number slightly beats expectations of 3.1%. Finally, the U6 rate (real unemployment) has dropped to 7%, the lowest since December 2000.
Meanwhile, the trade war with China (that Trump didn’t start) shows little sign of ending anytime soon, as Beijing’s puppet North Korea this week launched more test missiles. President Donald Trump responded by slapping a new 10% tariff on $300 billion worth of Chinese goods. The Federal Reserve then cut interest rates by a quarter of a percent, a measure aimed at ensuring the U.S. economy maintains its current strength through this trade war. Clearly, China aims to wait out Trump, in the hopes that he will lose in 2020. Trump is tightening the screws in the meantime.
Speaking of the election, Joe Biden seems to have been asleep these last two years, as he declared on Thursday that “the economy as well as the soul of this country is collapsing because of this presidency.” But Biden is not the only Democrat presidential candidate out deriding the economy. Sens. Bernie Sanders, Kamala Harris, and Elizabeth Warren have all claimed that Trump and Republicans are leading the country to certain economic disaster.
However, the “solution” Democrats are offering — a Big Government socialist takeover of the economy — is the opposite of what most Americans want or need. A recent Rasmussen/Harris poll found that the “Majority of Americans Believe Big Government Is the Only Factor Holding Economy Back,” reports The Washington Free Beacon. In fact, even Big Labor is warning Democrats not to assume it has union workers’ support, which is indicative that workers see Trump’s economy as pretty good and the Democrats’ push to import an endless supply of cheap, illegal labor as being in direct conflict with their own economic interests.
If the economy continues at its current strength under Trump’s leadership, he will be difficult for any Democrat presidential contender to unseat. Democrats know this, which is why they are hoping for the very economic collapse they are so loudly warning against.